U.S. stocks declined Thursday, with airline and restaurant shares knocked and the S&P 500 down for a third day, as concern about violence in Iraq increased, along with the price of oil.
"The transports and consumer discretionary names -- restaurants -- are getting banged up today; if people are paying more at the pump they are less likely to go to a restaurant," said Art Hogan, chief market strategist at Wunderlich Securities.
Crude spiked on worry of supply disruptions amid a Sunni militant uprising in Iraq that had rebels controlling two cities and the Wall Street Journal reporting that Iran was sending elite troops to help the Iraqi government fight the rebellion. President Barack Obama said he would not rule out the use of airstrikes to help Iraq's government.
In the transport sector, airlines including United Continental Holdings, Delta Air Lines and JetBlue Airways were slammed, along with the Dow Jones Transportation Average off 2 percent. Olive Garden-operator Darden Restaurants and fast-food chain McDonald's were among the consumer discretionary shares hit.
Domestically, retail sales rose less than expected in May, according to Commerce Department data, which had sales up 0.3 percent last month and the prior month revised higher to 0.5 percent.